Living Cost Compare
Ann Arbor

Michigan

$1,630/mo est.

vs
Minneapolis

Minnesota

$1,370/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,630 in Ann Arbor, MI versus $1,370 in Minneapolis, MN. Overall, Minneapolis, MN is roughly 16% cheaper to live in day-to-day than Ann Arbor, MI, driven mainly by rent.

Median household income is $81,089 in Ann Arbor, MI and $80,269 in Minneapolis, MN — about 1% higher in Ann Arbor, MI. Michigan has a top state income tax rate of 4.25% and a 6% state sales tax; Minnesota has a top state income tax rate of 9.85% and a 6.875% state sales tax.

Ann Arbor, MI
Minneapolis, MN

Rent

Studio
$1,274
$992
+22% in Ann Arbor, MI
1 Bedroom
$1,389
$1,192
+14% in Ann Arbor, MI
2 Bedroom
$1,692
$1,555
+8% in Ann Arbor, MI
3 Bedroom
$1,812
$1,761
+3% in Ann Arbor, MI

Buying a Home

Median Home Value
$435,100
$345,600
+21% in Ann Arbor, MI

Income

Median Household Income
$81,089
$80,269
+1% in Ann Arbor, MI
Metro Median Wage (annual)
$55,380
$59,320
+7% in Minneapolis, MN

People & Lifestyle

Median Age
27.7 yr
33.0 yr
+5.3 yr in Minneapolis, MN
Homeownership
45.6%
48.0%
+2.4 pp in Minneapolis, MN
Bachelor's+ (25+)
77.7%
54.5%
+23.2 pp in Ann Arbor, MI
Avg Commute
19.9 min
22.5 min
+2.6 min in Minneapolis, MN

Crime (per 100k/yr)

Violent Crime
311
1,168.5
+276% in Minneapolis, MN
Property Crime
1,744.5
5,183.1
+197% in Minneapolis, MN

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature
47.7°F
47.4°F
+0.3°F in Ann Arbor, MI
Annual Precipitation
32.8 in
32.8 in
about equal

Gas

Regular Gasoline
$3.85/gal
$3.96/gal
+3% in Minneapolis, MN

Area: Midwest (PADD 2) vs Minnesota.

Public Transit

Base Fare (one-way)
—
$2.00

Adult base one-way fare — — vs Metro Transit (2026).

Utilities

Electricity (¢/kWh)
23.0
17.5
+24% in Ann Arbor, MI
Natural Gas ($/MCF)
$19.72
$14.79
+25% in Ann Arbor, MI

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)
$4.31
$4.31
about equal
Bread (lb)
$1.66
$1.66
about equal
Eggs (doz)
$3.63
$3.63
about equal
Ground Beef (lb)
$6.77
$6.77
about equal
Chicken (lb)
$2.10
$2.10
about equal
Bananas (lb)
$0.62
$0.62
about equal

Average prices — Midwest vs Midwest (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (MI / MN)
6%
6.875%
+0.9 pp in MN
Income Tax (top rate)
4.25%
9.85%
+5.6 pp in MN

Ann Arbor vs Minneapolis — FAQ

Is it cheaper to live in Ann Arbor or Minneapolis?
Minneapolis, MN is cheaper. Its monthly baseline of $1,370 (1BR rent + utilities) runs about 16% below Ann Arbor, MI's $1,630, mainly because of rent.
How much more do you need to earn to live in Ann Arbor than in Minneapolis?
To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $48,000 in Minneapolis.
Which has lower taxes, Ann Arbor or Minneapolis?
Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Minneapolis under Minnesota's (a top state income tax rate of 9.85% and a 6.875% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).